Thursday, January 10, 2008

Writers' Strike Effects: $1.4 Billion Lost?

EW reports today that the writers' strike has cost WGA members and below-the-line workers a total of $1.4 billion in lost wages. And there is still no end in sight.

According to the Los Angeles County Economic Development Corporation's chief economist Jack Kyser there is about $70-80 million at stake just with the cancellation of the Golden Globes (NBC should lose about $15 million in ad revenues).

If the same happens to the Academy Awards which are supposed to be held on Sunday, February 24, the economic impact of that event is in the neighborhood of $130 million.

Obviously things have changed since the last writers' strike in 1988 which lasted for 22 weeks and is said to have cost the industry (as well as the local businesses depending on Hollywood production) about half a billion.

Once the strike is resolved I will be very curious to see how much the writers will have gained and compare that to the losses the industry will have endured.